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(TIMES) Bankers ponder reducing rates

Bankers ponder reducing rates
By NKOLE CHITALA

THE Bankers Association of Zambia (BAZ) is considering to reduce interest rates after talks with relevant stakeholders are concluded.

BAZ vice-chairperson Charity Lumpa said the association is confident that the reduction will be effected soon, with the support of the central bank and Government to reduce costs in the manner banks thrive to provide product and services to the public.

“We know the central bank perceive that there is high interest rates, We do acknowledge that we have a lot of work to do and ensure that this is done as soon as possible,” she said.

In an interview in Lusaka last week, Ms Lumpa said most banks have indicated willingness to reduce the rates within the working environment.

Last week United Bank for Africa (UBA) said Government should consider reducing the cost of doing business in the banking industry if interest rates are to reduce significantly.

The bank said there is need for the authorities to address issues causing high cost of borrowing as banks income is largely earned from interest rates.

Last week, President Sata told delegates to the 11th session of the National Assembly that Government will engage the banking sector with a view of reducing the high interest rates.

Mr Sata said the business community, particularly small- scale businesses face difficulties in accessing credit financing for their business development largely due to high interest.

Labels: BANKERS ASSOCIATION OF ZAMBIA, CHARITY LUMPA, LENDING RATES

posted by MrK @ 7:32 AM